1997 (7) TMI 315 - AT - Central Excise

Summary

Issues:
Denial of Modvat credit due to improper declaration of inputs under Rule 57G of Central Excise Rules, 1944.

Analysis:
The appellant filed an appeal against the Order-in-Appeal denying Modvat credit on inputs, citing improper declaration under Rule 57G. The appellant's counsel argued that a declaration was filed on 2nd March, 1986, specifying goods broadly with sub-headings from the Tariff. The Commissioner's decision was challenged, emphasizing that the inputs were properly described and used in manufacturing the final product, entitling them to Modvat credit.

The JDR for the respondent contended that the appellant failed to provide a specific declaration, only mentioning parts of certain Tariff headings. Specificity in declaring inputs was stressed, pointing out that certain items like Bimetal Cladcon and CRCA empty cabinets were not explicitly described in the declaration. The respondent urged the dismissal of the appeal on these grounds.

Upon hearing both sides, it was noted that the appellants were manufacturing electric goods falling under Chapter 8536.90 of the Central Excise Tariff Act, 1985 and availing Modvat under Rule 57G. The declaration filed on 20-3-1986 listed inputs broadly under certain headings. Despite the Revenue not disputing the receipt or use of the goods in the final product, the objection was solely on the lack of a proper declaration under Rule 57G. The Tribunal referenced a previous case to establish that the existence of a declaration, even with procedural irregularities, sufficed, distinguishing it from a total absence of declaration. Given that the appellants had declared parts of specific Tariff headings as inputs and the inputs were used as claimed, the impugned order was set aside, and the appeal allowed.